CIC Energy calls off Rs1,878 crore buyout offer from JSW Energy

Canadian power producer and coal miner CIC Energy Corporation yesterday called off the C$422 million (Rs1,878 crore) proposed buyout offer from JSW Energy, the independent power arm of the $5-billion Sajjan Jindal-owned JSW Group.

The Toronto-based company called off the deal after the final deadline expired yesterday following several extensions given to JSW to complete the deal after the Mumbai-based company had proposed to acquire CIC in September 2010. (See: Coal miner CIC Energy mulls $450 million takeover offer from Indian firm)

Under the deal, JSW Energy had offered to buy all the shares of CIC for $7.42 per share valuing CIC at around C$422 million. The transaction was expected to be completed by end-February 2010.

CIC, categorised as a junior coal miner, explores and develops coal properties in Botswana, where its flagship property, the A-grade steam Mmamabula Coal Field is estimated to hold 2.6 billion tonnes of high-thermal coal.

It is also in the process of developing the Mmamabula power complex comprising a 1,200-MW power station that is targeted primarily to supply power to South Africa.

CIC also has a coal to gas project called the CTH Project, which has the potential to convert some of the coal at the Mmamabula Coal Field to gas, fuels and petrochemicals.